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1. UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2003
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Exact name of registrant as specified in its charter, State or
other jurisdiction of incorporation or organization, Address of
Commission principal executive offices and Registrant's Telephone Number, IRS Employer
File Number including area code Identification No.
001-31387 NORTHERN STATES POWER COMPANY 41-1967505
(a Minnesota Corporation)
414 Nicollet Mall, Minneapolis, Minn. 55401
Telephone (612) 330-5500
001-3140 NORTHERN STATES POWER COMPANY 39-0508315
(a Wisconsin Corporation)
1414 W. Hamilton Ave., Eau Claire, Wis. 54701
Telephone (715) 839-2625
001-3280 PUBLIC SERVICE COMPANY OF COLORADO 84-0296600
(a Colorado Corporation)
1225 17th Street, Denver, Colo. 80202
Telephone (303) 571-7511
001-3789 SOUTHWESTERN PUBLIC SERVICE COMPANY 75-0575400
(a New Mexico Corporation)
Tyler at Sixth, Amarillo, Texas 79101
Telephone (303) 571-7511
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes No
Northern States Power Co. (a Minnesota corporation), Northern States Power Co. (a Wisconsin corporation), Public Service Co. of Colorado
and Southwestern Public Service Co. meet the conditions set forth in General Instruction H (1)(a) and (b) of Form 10-Q and are therefore filing
this Form 10-Q with the reduced disclosure format specified in General Instruction H (2) to such Form 10-Q.
Northern States Power Co. (a Minnesota Corporation) Common Stock, $0.01 par value 1,000,000 Shares
Northern States Power Co. (a Wisconsin Corporation) Common Stock, $100 par value 933,000 Shares
Public Service Co. of Colorado Common Stock, $0.01 par value 100 Shares
Southwestern Public Service Co. Common Stock, $1 par value 100 Shares
1
2. Table of Contents
PART I — FINANCIAL INFORMATION
Item l. Financial Statements 3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 23
PART II — OTHER INFORMATION
Item 1. Legal Proceedings 29
Item 6. Exhibits and Reports on Form 8-K 30
This combined Form 10-Q is separately filed by Northern States Power Co., a Minnesota corporation (NSP-Minnesota), Northern States Power
Co., a Wisconsin corporation (NSP-Wisconsin), Public Service Co. of Colorado (PSCo) and Southwestern Public Service Co. (SPS). NSP-
Minnesota, NSP-Wisconsin, PSCo and SPS are all wholly owned subsidiaries of Xcel Energy Inc. (Xcel Energy). Xcel Energy is a registered
holding company under the Public Utility Holding Company Act (PUHCA). Additional information on Xcel Energy is available on various
filings with the SEC.
Information contained in this report relating to any individual company is filed by such company on its own behalf. Each registrant makes
representations only as to itself and makes no other representations whatsoever as to information relating to the other registrants.
This report should be read in its entirety. No one section of the report deals with all aspects of the subject matter.
2
3. PART 1. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
NSP-MINNESOTA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Thousands of Dollars)
Three Months Ended March 31
2003 2002
Operating revenues:
Electric utility $586,911 $537,882
Electric trading margin 1,400 3,100
Natural gas utility 333,250 187,536
Other 6,194 6,733
Total operating revenues 927,755 735,251
Operating expenses:
Electric fuel and purchased power 208,990 184,445
Cost of natural gas sold and transported 268,692 128,488
Other operating and maintenance expenses 211,610 221,874
Depreciation and amortization 91,202 85,432
Taxes (other than income taxes) 44,346 43,318
Special charges (see Note 2) — 4,324
Total operating expenses 824,840 667,881
Operating income 102,915 67,370
Other income (expense):
Interest income 1,900 1,469
Other nonoperating income 2,600 8,287
Nonoperating expense (1,480) (1,092)
Total other income (expense) 3,020 8,664
Interest charges and financing costs:
Interest charges — net of amounts capitalized, includes other financing costs of $1,734 and
$1,159, respectively 31,974 17,575
Distributions on redeemable preferred securities of subsidiary trust 3,938 3,938
Total interest charges and financing costs 35,912 21,513
Income before income taxes 70,023 54,521
Income taxes 25,572 21,488
Net income $ 44,451 $ 33,033
See disclosures regarding NSP-Minnesota in the Notes to Consolidated Financial Statements
3
4. NSP-MINNESOTA
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Thousands of Dollars)
Three Months Ended March 31
2003 2002
Operating activities:
Net income $ 44,451 $ 33,033
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization 93,533 87,361
Nuclear fuel amortization 11,791 12,037
Deferred income taxes (10,395) (20,277)
Amortization of investment tax credits (1,841) (2,212)
Allowance for equity funds used during construction (2,009) (1,488)
Gain on sale of property — (6,785)
Change in accounts receivable (54,250) (18,015)
Change in inventories 25,375 10,500
Change in other current assets (14,683) 15,946
Change in accounts payable 7,997 (14,261)
Change in other current liabilities 3,775 56,573
Change in other noncurrent assets 1,261 (14,688)
Change in other noncurrent liabilities 14,217 24,854
Net cash provided by operating activities 119,222 162,578
Investing activities:
Capital/construction expenditures (90,564) (88,010)
Proceeds from sale of property — 11,152
Allowance for equity funds used during construction 2,009 1,488
Investments in external decommissioning fund (8,406) (14,259)
Other investments — net (1,638) (963)
Net cash used in investing activities (98,599) (90,592)
Financing activities:
Short-term borrowings — net (2) (5,142)
Repayment of long-term debt, including reacquisition premiums (107,790) (278)
Dividends paid to parent (52,280) (44,332)
Net cash used in financing activities (160,072) (49,752)
Net (decrease) increase in cash and cash equivalents (139,449) 22,234
Cash and cash equivalents at beginning of year 310,338 17,169
Cash and cash equivalents at end of year $ 170,889 $ 39,403
See disclosures regarding NSP-Minnesota in the Notes to Consolidated Financial Statements
4
5. NSP-MINNESOTA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Thousands of Dollars)
March 31 Dec. 31
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $ 170,889 $ 310,338
Restricted cash 23,000 23,000
Accounts receivable — net of allowance for bad debts: $5,777 and $5,812, respectively 294,087 231,996
Accounts receivable from affiliates 16,932 24,773
Accrued unbilled revenues 131,166 109,435
Materials and supplies inventories — at average cost 105,972 106,037
Fuel inventory — at average cost 29,589 34,875
Natural gas inventory — at average cost 4,361 24,385
Derivative instrument valuation — at market 5,482 3,831
Prepayments and other 22,300 34,234
Total current assets 803,778 902,904
Property, plant and equipment, at cost:
Electric utility plant 7,012,661 6,855,807
Natural gas utility plant 720,989 716,844
Construction work in progress 354,736 313,931
Other 385,322 384,214
Total property, plant and equipment 8,473,708 8,270,796
Less accumulated depreciation (4,167,217) (4,624,988)
Nuclear fuel — net of accumulated amortization: $1,070,322 and $1,058,531, respectively 85,567 74,139
Net property, plant and equipment 4,392,058 3,719,947
Other assets:
Nuclear decommissioning fund investments 617,650 617,048
Other investments 23,896 22,730
Regulatory assets 396,700 212,539
Prepaid pension asset 276,383 263,713
Other 64,500 72,144
Total other assets 1,379,129 1,188,174
Total assets $ 6,574,965 $ 5,811,025
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt $ 118,715 $ 226,462
Short-term debt 67 69
Accounts payable 230,079 198,889
Accounts payable to affiliates 43,673 66,866
Taxes accrued 214,000 210,041
Accrued interest 27,271 44,167
Dividends payable to parent 53,569 52,280
Derivative instrument valuation — at market 4,791 3,958
Other 57,526 39,297
Total current liabilities 749,691 842,029
Deferred credits and other liabilities:
Deferred income taxes 684,304 700,966
Deferred investment tax credits 72,603 74,577
Regulatory liabilities 490,337 486,035
Asset retirement obligations (see Note 1) 875,937 —
6. Benefit obligations and other 140,075 136,452
Total deferred credits and other liabilities 2,263,256 1,398,030
Long-term debt 1,570,112 1,569,938
Mandatorily redeemable preferred securities of subsidiary trust 200,000 200,000
Common stock — authorized 5,000,000 shares of $0.01 par value, outstanding 1,000,000 shares 10 10
Premium on common stock 813,869 813,869
Retained earnings 978,041 987,158
Accumulated other comprehensive (loss) income (14) (9)
Total common stockholder’s equity 1,791,906 1,801,028
Commitments and contingencies (see Note 4)
Total liabilities and equity $ 6,574,965 $ 5,811,025
See disclosures regarding NSP-Minnesota in the Notes to Consolidated Financial Statements
5
7. NSP-WISCONSIN
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Thousands of Dollars)
Three Months Ended March 31
2003 2002
Operating revenues:
Electric utility $120,526 $116,922
Natural gas utility 64,433 40,394
Other 87 86
Total operating revenues 185,046 157,402
Operating expenses:
Electric fuel and purchased power 55,463 54,531
Cost of natural gas sold and transported 50,656 29,234
Other operating and maintenance expenses 24,438 23,588
Depreciation and amortization 11,334 10,755
Taxes (other than income taxes) 4,227 4,100
Special charges (see Note 2) — 512
Total operating expenses 146,118 122,720
Operating income 38,928 34,682
Other income (expense):
Interest income 161 697
Other nonoperating income 262 181
Nonoperating expense (102) (56)
Total other income (expense) 321 822
Interest charges — net of amounts capitalized; includes other
financing costs of $224 and $224, respectively 5,731 5,833
Income before income taxes 33,518 29,671
Income taxes 13,664 11,720
Net income $ 19,854 $ 17,951
See disclosures regarding NSP-Wisconsin in the Notes to Consolidated Financial Statements
6
8. NSP-WISCONSIN
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Thousands of Dollars)
Three Months Ended March 31
2003 2002
Operating activities:
Net income $ 19,854 $ 17,951
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 11,591 11,060
Deferred income taxes 668 155
Amortization of investment tax credits (198) (202)
Allowance for equity funds used during construction (207) (184)
Undistributed equity in earnings of unconsolidated affiliates (2) (62)
Change in accounts receivable (7,657) (15,218)
Change in inventories 3,950 4,101
Change in other current assets 4,483 9,469
Change in accounts payable 1,968 6,800
Change in other current liabilities 16,532 14,288
Change in other assets (834) (3,387)
Change in other liabilities (675) (330)
Net cash provided by operating activities 49,473 44,441
Investing activities:
Capital/construction expenditures (9,155) (8,037)
Allowance for equity funds used during construction 207 184
Other investments — net (10) (81)
Net cash used in investing activities (8,958) (7,934)
Financing activities:
Short-term borrowings from affiliate — net (6,880) (25,500)
Dividends paid to parent (12,260) (11,006)
Net cash used in financing activities (19,140) (36,506)
Net increase in cash and cash equivalents 21,375 1
Cash and cash equivalents at beginning of period 98 30
Cash and cash equivalents at end of period $ 21,473 $ 31
See disclosures regarding NSP-Wisconsin in the Notes to Consolidated Financial Statements
7
9. NSP-WISCONSIN
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Thousands of Dollars)
March 31 Dec. 31
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $ 21,473 $ 98
Accounts receivable — net of allowance for bad debts: $835 and $1,373, respectively 55,354 47,890
Accounts receivable from affiliates 1,653 1,460
Accrued unbilled revenues 22,112 20,074
Materials and supplies inventories — at average cost 5,941 5,994
Fuel inventory — at average cost 5,340 6,006
Natural gas inventory — at average cost 1,032 4,263
Current deferred income taxes 6,751 —
Prepaid taxes 10,496 13,735
Prepayments and other 1,234 1,681
Total current assets 131,386 101,201
Property, plant and equipment, at cost:
Electric utility plant 1,171,169 1,161,901
Natural gas utility plant 133,064 131,969
Construction work in progress 20,144 18,305
Other 92,825 95,631
Total property, plant and equipment 1,417,202 1,407,806
Less accumulated depreciation (603,757) (592,187)
Net property, plant and equipment 813,445 815,619
Other assets:
Other investments 9,829 9,817
Regulatory assets 47,288 48,112
Prepaid pension asset 40,446 38,557
Other 7,106 7,577
Total other assets 104,669 104,063
Total assets $1,049,500 $1,020,883
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt $ 40,034 $ 40,034
Short-term debt — notes payable to affiliate — 6,880
Accounts payable 27,780 23,535
Accounts payable to affiliates 4,559 6,836
Dividends payable to parent 12,455 12,260
Other 36,757 20,225
Total current liabilities 121,585 109,770
Deferred credits and other liabilities:
Deferred income taxes 156,725 146,471
Deferred investment tax credits 14,622 14,820
Regulatory liabilities 11,891 11,950
Benefit obligations and other 45,412 46,026
Total deferred credits and other liabilities 228,650 219,267
Long-term debt 273,129 273,108
Common stock — authorized 1,000,000 shares of $100 par value; outstanding 933,000 shares 93,300 93,300
10. Premium on common stock 62,981 62,981
Retained earnings 269,855 262,457
Total common stockholder’s equity 426,136 418,738
Commitments and contingent liabilities (see Note 4)
Total liabilities and equity $1,049,500 $1,020,883
See disclosures regarding NSP-Wisconsin in the Notes to Consolidated Financial Statements
8
11. PUBLIC SERVICE CO. OF COLORADO AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Thousands of dollars)
Three Months ended March 31,
2003 2002
Operating revenues:
Electric utility $494,489 $437,649
Electric trading margin (2,051) (3,599)
Natural gas utility 256,677 316,865
Steam and other 6,648 7,765
Total operating revenues 755,763 758,680
Operating expenses:
Electric fuel and purchased power 255,795 209,168
Cost of natural gas sold and transported 154,907 210,844
Cost of sales — steam and other 3,698 1,525
Other operating and maintenance expenses 114,768 117,318
Depreciation and amortization 58,643 64,564
Taxes (other than income taxes) 20,181 22,272
Special charges (see Note 2) — 131
Total operating expenses 607,992 625,822
Operating income 147,771 132,858
Other income (expense):
Interest income 441 96
Other nonoperating income 1,562 1,279
Nonoperating expenses (3,204) (2,467)
Total other income (expense) (1,201) (1,092)
Interest charges and financing costs:
Interest charges — net of amounts capitalized, includes other financing costs of $1,716 and
$869, respectively 35,917 27,655
Distributions on redeemable preferred securities of subsidiary trust 3,686 3,800
Total interest charges and financing costs 39,603 31,455
Income before income taxes and extraordinary item 106,967 100,311
Income taxes 36,880 33,620
Net income $ 70,087 $ 66,691
See disclosures regarding PSCo in the Notes to Consolidated Financial Statements
9
12. PUBLIC SERVICE CO. OF COLORADO AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Thousands of dollars)
Three Months Ended March 31,
2003 2002
Operating activities:
Net income $ 70,087 $ 66,691
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 61,509 65,434
Deferred income taxes 52,061 11,395
Amortization of investment tax credits (1,833) (1,022)
Allowance for equity funds used during construction (269) 2
Change in accounts receivable (40,948) (44,791)
Change in unbilled revenue 83,157 23,702
Change in recoverable natural gas and electric costs (93,100) (42,445)
Change in inventories 47,954 38,459
Change in other current assets (8,054) (9,103)
Change in accounts payable (61,476) (55,463)
Change in other current liabilities 45,668 83,789
Change in other assets 2,302 (17,327)
Change in other liabilities 7,863 13,627
Net cash provided by operating activities 164,921 132,948
Investing activities:
Capital/construction expenditures (78,694) (86,162)
Proceeds from disposition of property, plant and equipment 1,371 6,363
Allowance for equity funds used during construction 269 (2)
Other investments — net (313) 1,769
Net cash used in investing activities (77,367) (78,032)
Financing activities:
Short-term borrowings — net (88,537) (46,159)
Proceeds from issuance of long-term debt 247,277 —
Repayment of long-term debt, including reacquisition premiums (2,012) (568)
Capital contributions from parent — 50,000
Dividends paid to parent (60,550) (53,387)
Net cash provided by (used in) financing activities 96,178 (50,114)
Net increase in cash and cash equivalents 183,732 4,802
Cash and cash equivalents at beginning of period 25,924 22,666
Cash and cash equivalents at end of period $209,656 $ 27,468
See disclosures regarding PSCo in the Notes to Consolidated Financial Statements
10
13. PUBLIC SERVICE CO. OF COLORADO
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Thousands of dollars)
March 31, Dec. 31,
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $ 209,656 $ 25,924
Accounts receivable — net of allowance for bad debts: $14,215 and $13,685, respectively 209,410 165,743
Accounts receivable from affiliates 16,689 19,407
Accrued unbilled revenues 120,812 203,969
Recoverable purchased natural gas and electric energy costs 128,518 23,131
Materials and supplies inventories — at average cost 49,153 49,579
Fuel inventory — at average cost 23,205 25,366
Natural gas inventories — replacement cost in excess of LIFO: $31,985 and $20,502, respectively 40,312 85,679
Derivative instruments valuation — at market 5,178 2,735
Prepayments and other 21,311 13,257
Total current assets 824,244 614,790
Property, plant and equipment, at cost:
Electric utility plant 5,393,620 5,345,464
Natural gas utility plant 1,511,331 1,494,017
Construction work in progress 481,633 456,800
Other 626,101 624,764
Total property, plant and equipment 8,012,685 7,921,045
Less accumulated depreciation (2,951,835) (2,896,978)
Net property, plant and equipment 5,060,850 5,024,067
Other assets:
Other investments 8,317 12,319
Regulatory assets 219,846 238,600
Other 39,434 35,150
Total other assets 267,597 286,069
Total assets $ 6,152,691 $ 5,924,926
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt $ 427,106 $ 282,097
Short-term debt — 88,074
Note payable to affiliate 14,679 15,142
Accounts payable 263,940 318,005
Accounts payable to affiliates 32,968 40,449
Taxes accrued 65,888 47,363
Dividends payable to parent 58,846 60,550
Derivative instruments valuation — at market 6,125 2,593
Current deferred income tax 58,777 22,298
Accrued interest 52,220 44,391
Other 72,062 53,574
Total current liabilities 1,052,611 974,536
Deferred credits and other liabilities:
Deferred income taxes 566,301 553,006
Deferred investment tax credits 73,979 74,987
Regulatory liabilities 45,097 45,707
Customers advances for construction 162,828 142,992
Minimum pension liability 104,773 104,773
14. Benefit obligations and other 77,373 74,335
Total deferred credits and other liabilities 1,030,351 995,800
Long-term debt 1,884,354 1,782,128
Mandatorily redeemable preferred securities of subsidiary trust 194,000 194,000
Common stock — authorized 100 shares of $0.01 par value; outstanding 100 shares — —
Premium on common stock 1,652,284 1,652,284
Retained earnings 442,237 430,997
Accumulated comprehensive income (loss) (103,146) (104,819)
Total common stockholder’s equity 1,991,375 1,978,462
Commitments and contingencies (see Note 4)
Total liabilities and equity $ 6,152,691 $ 5,924,926
See disclosures regarding PSCo in the Notes to Consolidated Financial Statements
11
15. SOUTHWESTERN PUBLIC SERVICE CO.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Thousands of Dollars)
Three Months Ended March 31
2003 2002
Operating revenues $244,597 $211,692
Operating expenses:
Electric fuel and purchased power 140,188 97,976
Other operating and maintenance expenses 42,844 39,516
Depreciation and amortization 21,512 22,004
Taxes (other than income taxes) 11,730 11,758
Special charges (see Note 2) — 5,321
Total operating expenses 216,274 176,575
Operating income 28,323 35,117
Other income (expense):
Interest income 1,138 715
Other nonoperating income 577 1,136
Nonoperating expense (35) (3)
Total other income (expense) 1,680 1,848
Interest charges and financing costs:
Interest charges — net of amounts capitalized; includes other financing costs of $1,639 and
$1,535 respectively 11,732 11,392
Distributions on redeemable preferred securities of subsidiary trust 1,963 1,963
Total interest charges and financing costs 13,695 13,355
Income before income taxes 16,308 23,610
Income taxes 6,217 8,862
Net income $ 10,091 $ 14,748
See disclosures regarding SPS in the Notes to Consolidated Financial Statements
12
16. SOUTHWESTERN PUBLIC SERVICE CO.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Thousands of Dollars)
Three Months Ended March 31
2003 2002
Operating activities:
Net income $ 10,091 $ 14,748
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 23,298 23,826
Deferred income taxes 4,491 4,092
Amortization of investment tax credits (63) (62)
Allowance for equity funds used during construction (575) (206)
Change in recoverable electric energy costs (1,415) (39,883)
Change in accounts receivable (34,216) (9,178)
Change in inventories 390 (1,213)
Change in other current assets 7,802 40,570
Change in accounts payable 31,218 7,980
Change in other current liabilities (3,873) (1,969)
Change in other noncurrent assets (3,581) (7,391)
Change in other noncurrent liabilities 1,493 1,969
Net cash provided by operating activities 35,060 33,283
Investing activities:
Capital/construction expenditures (20,690) (6,478)
Allowance for equity funds used during construction 575 206
Other investments — net 257 (1,073)
Net cash used in investing activities (19,858) (7,345)
Financing activities:
Dividends paid to parent (24,428) (60,969)
Net cash used in financing activities (24,428) (60,969)
Net decrease in cash and cash equivalents (9,226) (35,031)
Cash and cash equivalents at beginning of period 60,700 65,499
Cash and cash equivalents at end of period $ 51,474 $ 30,468
See disclosures regarding SPS in the Notes to Consolidated Financial Statements
13
17. SOUTHWESTERN PUBLIC SERVICE CO.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Thousands of Dollars)
March 31 Dec. 31
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $ 51,474 $ 60,700
Accounts receivable — net of allowance for bad debts: $1,463 and $1,559, respectively 95,493 49,460
Accounts receivable from affiliates 10,970 22,787
Accrued unbilled revenues 44,053 52,999
Recoverable electric energy costs 17,854 16,439
Materials and supplies inventories — at average cost 16,212 17,231
Fuel inventories — at average cost 1,951 1,322
Prepayments and other 7,353 6,059
Total current assets 245,360 226,997
Property, plant and equipment, at cost:
Electric utility plant 3,075,826 3,076,970
Other and construction work in progress 74,666 64,908
Total property, plant and equipment 3,150,492 3,141,878
Less accumulated depreciation (1,346,471) (1,338,340)
Net property, plant and equipment 1,804,021 1,803,538
Other assets:
Other investments 14,125 14,382
Regulatory assets 103,108 105,404
Prepaid pension asset 108,357 105,044
Deferred charges and other 9,091 9,979
Total other assets 234,681 234,809
Total assets $ 2,284,062 $ 2,265,344
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 104,836 $ 73,536
Accounts payable to affiliates 9,522 9,604
Taxes accrued 17,048 24,107
Accrued interest 11,167 7,630
Dividends payable to parent 24,649 24,427
Current portion of accumulated deferred income taxes 14,825 13,034
Derivative instruments valuation — at market 1,123 1,176
Other 22,122 22,473
Total current liabilities 205,292 175,987
Deferred credits and other liabilities:
Deferred income taxes 402,309 399,800
Deferred investment tax credits 4,154 4,217
Regulatory liabilities 2,328 2,363
Derivative instruments valuation — at market 5,636 6,008
Benefit obligations and other 24,090 22,597
Total deferred credits and other liabilities 438,517 434,985
Long-term debt 725,734 725,662
Mandatorily redeemable preferred securities of subsidiary trust 100,000 100,000
Common stock — authorized 200 shares of $1.00 par value, outstanding 100 shares — —
18. Premium on common stock 411,329 411,329
Retained earnings 407,417 421,976
Accumulated other comprehensive income (loss) (4,227) (4,595)
Total common stockholder’s equity 814,519 828,710
Commitments and contingencies (see Note 4)
Total liabilities and equity $ 2,284,062 $ 2,265,344
See disclosures regarding SPS in the Notes to Consolidated Financial Statements
14
19. NOTES TO FINANCIAL STATEMENTS
In the opinion of management, the accompanying unaudited consolidated and stand-alone financial statements contain all adjustments
necessary to present fairly the financial position of NSP-Minnesota, NSP-Wisconsin, PSCo and SPS (collectively referred to as the Utility
Subsidiaries of Xcel Energy) as of March 31, 2003, and Dec. 31, 2002, the results of their operations for the three months ended March 31,
2003 and 2002, and their cash flows for the three months ended March 31, 2003 and 2002. Due to the seasonality of electric and natural gas
sales of Xcel Energy’s Utility Subsidiaries, quarterly results are not necessarily an appropriate base from which to project annual results.
The accounting policies of NSP-Minnesota, NSP-Wisconsin, PSCo and SPS are set forth in Note 1 to their financial statements in their
respective Annual Reports on Form 10-K for the year ended Dec. 31, 2002. The following notes should be read in conjunction with such
policies and other disclosures in the Form 10-K’s.
We reclassified certain items in the 2002 income statement to conform to the presentation disclosed in the 2002 Annual Report on Form 10-K.
These reclassifications had no effect on stockholders’ equity, net income or earnings per share as previously reported. The reclassifications
were primarily to conform the presentation of all consolidated Xcel Energy subsidiaries to a standard corporate presentation.
1. Accounting Changes — Asset Retirement Obligations (NSP-Minnesota, NSP-Wisconsin, PSCo and SPS)
The Utility Subsidiaries of Xcel Energy adopted Statement of Financial Accounting Standard (SFAS) No. 143, “Accounting for Asset
Retirement Obligations” effective Jan. 1, 2003. As required by SFAS No. 143, future plant decommissioning obligations were recorded as a
liability at fair value as of Jan. 1, 2003, with a corresponding increase to the carrying values of the related long-lived assets. This liability will
be increased over time by applying the interest method of accretion to the liability, and the capitalized costs will be depreciated over the useful
life of the related long-lived assets. Since SFAS No. 143 will primarily affect Xcel Energy’s utility subsidiaries, the adoption of the statement
had no income statement impact, as the cumulative effect adjustments required under SFAS No. 143 have been deferred through the
establishment of a regulatory asset pursuant to SFAS No. 71, “Accounting for the Effects of Certain Types of Regulation.”
Asset retirement obligations were recorded for the decommissioning of two NSP-Minnesota nuclear generating plants, the Monticello plant and
the Prairie Island plant. A liability was also recorded for decommissioning of an NSP-Minnesota steam production plant, the Pathfinder plant.
Monticello began operation in 1971 and is licensed to operate until 2010. Prairie Island units 1 and 2 began operation in 1973 and 1974,
respectively, and are licensed to operate until 2013 and 2014, respectively. Pathfinder operated as a steam production peaking facility from
1969 through June of 2000.
A summary of the accounting for the initial adoption of SFAS No. 143 is as follows (in thousands of dollars):
Increase (decrease) in:
Regulatory Long-term
Plant Assets Assets Liabilities
Reflect retirement obligation when liability incurred $ 130,659 $ — $130,659
Record accretion of liability to adoption date — 731,709 731,709
Record depreciation of plant to adoption date (110,573) 110,573 —
Reclassify pre-adoption accumulated depreciation 662,411 (662,411) —
Net impact of SFAS No. 143 on Balance Sheet $ 682,497 $ 179,871 $862,368
A reconciliation of the beginning and ending aggregate carrying amount of NSP-Minnesota’s asset retirement obligations recorded under SFAS
No. 143 is shown in the table below for the three months ending March 31, 2003.
(Thousands of dollars)
Quarter Ended March 31, 2003
Ending
Beginning Revisions Balance
Balance Jan. Liabilities Liabilities to Prior March 31,
Obligation 1, 2003 Incurred Settled Accretion Estimates 2003
Steam plant retirement $ 2,725 $— $— $ 33 $— $ 2,758
Nuclear plant decommissioning 859,643 — — 13,536 — 873,179
Total liability $862,368 $— $— $13,569 $— $875,937
20. The adoption of SFAS No. 143 resulted in the recording of a capitalized plant asset of $131 million for the discounted cost of asset retirement
as of the date the liability was incurred. Accumulated depreciation on this additional capitalized cost
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21. through the date of adoption of SFAS No. 143, was $111 million. A regulatory asset of $842 million was recognized for the accumulated SFAS
No. 143 costs recognized for accretion of the initial liability and depreciation of the additional capitalized cost through adoption date. This
regulatory asset was partially offset by $662 million for the reversal of the decommissioning costs previously accrued in accumulated
depreciation for these plants prior to the implementation of SFAS No. 143. The net regulatory asset of $180 million at Jan. 1, 2003 reflects the
excess of costs that would have been recorded in expense under SFAS No. 143 over the amount of costs recorded consistent with ratemaking
cost recovery for NSP-Minnesota. We expect this regulatory asset to reverse over time since the amount of costs to be accrued under SFAS
No. 143 are the same as the costs to be recovered through current NSP-Minnesota ratemaking. Consequently, no cumulative effect adjustment
to earnings or shareholders’ equity has been recorded for the adoption of SFAS No. 143 in 2003 as all such effects have been deferred as a
regulatory asset.
The following pro-forma liabilities reflect amounts as if SFAS No. 143 had been applied during all periods reported (in millions):
Dec. 31,
Liability 2002
Steam production $ 2.7
Nuclear decommissioning 859.6
Total pro-forma liability $862.3
Pro forma net income and earnings per share have not been presented for the years ended Dec. 31, 2002 because the pro forma application of
SFAS No. 143 to prior periods would not have changed net income or earnings per share due to the regulatory deferral of any differences of
past cost recognition and SFAS No. 143 methodology, as discussed previously.
The fair value of the assets legally restricted for purposes of settling the nuclear asset retirement obligations is $665 million as of March 31,
2003.
The adoption of SFAS No. 143 in 2003 will also affect Xcel Energy’s accrued plant removal costs for other generation, transmission and
distribution facilities for its utility subsidiaries. Although SFAS No. 143 does not recognize the future accrual of removal costs as a Generally
Accepted Accounting Principles liability, long-standing ratemaking practices approved by applicable state and federal regulatory commissions
have allowed provisions for such costs in historical depreciation rates. These removal costs have accumulated over a number of years based on
varying rates as authorized by the appropriate regulatory entities. Given the long periods over which the amounts were accrued and the
changing of rates through time, the Utility Subsidiaries have estimated the amount of removal costs accumulated through historic depreciation
expense based on current factors used in the existing depreciation rates. Accordingly, the estimated amounts of future removal costs, which are
considered regulatory liabilities under SFAS No. 143 that are accrued in accumulated depreciation, are as follows at Jan. 1, 2003:
(Millions of Dollars)
NSP-Minnesota $304
NSP-Wisconsin 70
PSCo. 329
SPS 97
2. Special Charges (NSP-Minnesota, NSP-Wisconsin, PSCo and SPS)
2002 Regulatory Recovery Adjustment — In late 2001, SPS filed an application requesting recovery of costs incurred to comply with
transition to retail competition legislation in Texas and New Mexico. During the first quarter of 2002, SPS entered into a settlement agreement
with intervenors regarding the recovery of restructuring costs in Texas, which was approved by the state regulatory commission in May 2002.
Based on the settlement agreement, SPS wrote off pretax restructuring costs of approximately $5 million.
2002 Restaffing — During the fourth quarter of 2001, Xcel Energy recorded an estimated liability for expected staff consolidation costs for an
estimated 500 employees in several utility operating and corporate support areas of Xcel Energy. In the first quarter of 2002, the identification
of affected employees was completed and additional pretax special charges of $9 million were expensed for the final costs of the utility related
staff consolidations. All 564 of accrued staff terminations have occurred.
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22. ------------------------ ------------------------
The following table summarizes the activity related to accrued special charges for the first three months of 2003 (in thousands of dollars).
Dec. 31, 2002 Accrued Special March 31, 2003
Liability Charges Payments Liability
Employee severance and related costs $13,120 $— $(6,415) $6,705
Total accrued special charges — Xcel Energy $13,120 $— $(6,415) $6,705
Employee severance and related costs for Utility Subsidiaries:
NSP-Minnesota $ 1,567 $— $ (938) $ 629
NSP-Wisconsin 171 — (108) 63
PSCo 267 — (212) 55
SPS 250 — (155) 95
Total accrued special charges — Utility Subs $ 2,255 $— $(1,413) $ 842
3. Regulation (PSCo and SPS)
PSCo General Rate Case - In May 2002, PSCo filed a combined general retail electric, natural gas and thermal energy base rate case with the
Colorado Public Utilities Commission (CPUC) to address increased costs for providing energy to Colorado customers. On April 4, 2003, a
comprehensive settlement agreement between PSCo and all but one of the intervenors was executed and filed with the CPUC, which addressed
all significant issues in the rate case. In summary, the settlement agreement, among other things, provides for:
• annual base rate decreases of approximately $33 million for natural gas and $230,000 for electricity, including an annual reduction to
electric depreciation expense of approximately $20 million, effective July 1, 2003;
• an interim adjustment clause (IAC) that recovers 100 percent of prudently incurred 2003 electric fuel and purchased energy expense
above the expense recovered through electric base rates during 2003. This clause is projected to recover energy costs totaling
approximately $216 million in 2003. The IAC originally went into effect on Jan. 1, 2003. The IAC rate was increased on May 1,
2003 by $93 million to recover the total anticipated energy costs for 2003;
• a new electric commodity adjustment clause (ECA) for 2004 through 2006, with an $11.25-million cap on any cost sharing over or
under an allowed ECA formula rate;
• an authorized return on equity of 10.75 percent for electricity and 11.0 percent for natural gas and thermal energy.
Hearings on one settlement agreement were held in late April 2003. Management believes the CPUC will approve the settlement agreement
and issue a final rate order during the second quarter, with new rates effective as discussed above. PSCo will now move to the phase II, rate
design, portion of the case.
PSCo Fuel Adjustment Clause Proceedings — Certain wholesale power customers of PSCo have filed complaints with the FERC alleging
PSCo has been improperly collecting certain fuel and purchased energy costs through the wholesale fuel cost adjustment clause included in
their rates. The FERC consolidated these complaints and set them for hearing and settlement judge procedures. In November 2002, the Chief
Judge terminated settlement procedures after settlement was not reached. The complainants’ filed initial testimony in late April 2003 claiming
the improper inclusion of fuel and purchased energy costs in the range of $40-50 million related to the 1996 to 2002 period. PSCo is currently
analyzing the testimony and will file rebuttal testimony in June 2003. The hearings are scheduled for August 2003.
PSCo had an Incentive Cost Adjustment (ICA) for periods prior to calendar 2003, as disclosed in the 2002 Form 10-K. The CPUC is
conducting a proceeding to review and approve the incurred and recoverable 2001 costs under the ICA. In April 2003, the CPUC Staff and an
intervenor filed testimony recommending disallowance of fuel and purchased energy costs, which, if granted, would result in a $30 million
reduction in recoverable 2001 ICA costs. PSCo is currently analyzing the testimony of the CPUC Staff and the intervenor and will file rebuttal
testimony in June 2003. The hearings on this matter are scheduled to commence in July 2003. If CPUC Staff and the intervenor are successful,
recommended disallowances would also result in a reduction of the recoverable 2002 ICA costs. A review of the 2002 recoverable ICA costs
will be conducted in a future proceeding.
At March 31, 2003, PSCo has recorded its deferred fuel and purchased energy costs based on the expected rate recovery of its costs as filed in
the above rate proceedings, without the adjustments proposed by various parties. Pending the
24. outcome of these regulatory proceedings, we cannot at this time determine whether any customer refunds or disallowances of PSCo’s deferred
costs will be required.
SPS Texas Fuel Factor and Fuel Surcharge Application — In May 2003, SPS proposed to increase its voltage-level fuel factors to reflect
increased fuel costs since the time SPS’ current fuel factors were approved in March 2002. The proposed fuel factors are expected to increase
Texas retail revenues by approximately $60.2 million.
SPS has reported to the PUCT that it has under-collected its fuel costs under the current Texas retail fixed fuel factors. In May 2003, SPS
proposed to surcharge $13.2 million and related interest for fuel cost under-recoveries incurred through March 2003. The surcharge will be
amortized and collected over an eight-month period. Recovery amounts would depend on future fuel rates once the filing is approved.
4. Commitments and Contingent Liabilities (NSP-Minnesota, NSP-Wisconsin, PSCo and SPS)
Lawsuits and claims arise in the normal course of business. Management, after consultation with legal counsel, has recorded an estimate of the
probable cost of settlement or other disposition of them.
Xcel Energy’s Utility Subsidiaries have been or are currently involved with the cleanup of contamination from certain hazardous substances at
several sites. In many situations, Xcel Energy’s Utility Subsidiaries are pursuing, or intend to pursue, insurance claims and believe they will
recover some portion of these costs through such claims. Additionally, where applicable, Xcel Energy’s Utility Subsidiaries are pursuing, or
intend to pursue, recovery from other potentially responsible parties and through the rate regulatory process. To the extent any costs are not
recovered through the options listed above, Xcel Energy’s Utility Subsidiaries would be required to recognize an expense for such
unrecoverable amounts.
The circumstances set forth in Notes 13 and 14 to the financial statements in NSP-Minnesota’s, NSP-Wisconsin’s, PSCo’s and SPS’ Annual
Reports on Form 10-K for the year ended Dec. 31, 2002, appropriately represent, in all material respects, the current status of commitments and
contingent liabilities, including those regarding public liability for claims resulting from any nuclear incident and are incorporated herein by
reference. Following are unresolved contingencies, which are material to the financial position of Xcel Energy’s Utility Subsidiaries:
• Tax Matters — Internal Revenue Service issue of Notice of Proposed Adjustment regarding the tax deductibility of corporate owned
life insurance loan interest deductions taken in tax years beginning in 1993
5. Short-Term Borrowings and Financing Activities (NSP-Minnesota and PSCo)
NSP-Minnesota
At March 31, 2003, NSP-Minnesota had approximately $0.1 million of short-term debt outstanding at a weighted average interest rate of
8.5 percent.
In April 2003, NSP-Minnesota amended an existing shelf registration statement with $415 million of available debt to allow for the issuance of
secured debt, in addition to unsecured debt.
PSCo
At March 31, 2003, PSCo had no short-term debt outstanding.
In March 2003, PSCo issued $250 million of first collateral trust bonds. These bonds carry a fixed interest rate of 4.875 percent and mature in
2013. The proceeds were used to repay outstanding short-term debt and to pay long-term debt at maturity.
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25. In April 2003, PSCo registered $500 million of additional debt securities to supplement the existing $300 million of already registered debt
securities.
6. Derivative Valuation and Financial Impacts (NSP-Minnesota, PSCo and SPS)
Xcel Energy’s Utility Subsidiaries analyze derivative financial instruments in accordance with SFAS No. 133 — “Accounting for Derivative
Instruments and Hedging Activities” (SFAS No. 133). This statement requires that all derivative instruments as defined by SFAS No. 133 be
recorded on the balance sheet at fair value unless exempted. Changes in a derivative instrument’s fair value must be recognized currently in
earnings unless the derivative has been designated in a qualifying hedging relationship. The application of hedge accounting allows a derivative
instrument’s gains and losses to offset related results of the hedged item in the statement of operations, to the extent effective. SFAS No. 133
requires that the hedging relationship be highly effective and that a company formally designate a hedging relationship to apply hedge
accounting.
The impact of the components of SFAS No. 133 on Other Comprehensive Income, included in Stockholders’ Equity, are detailed in the
following table:
Three months ended
March 31, 2003
NSP-
(Millions of dollars) Minnesota PSCo SPS
Balance at Jan. 1, 2003 $0.0 $1.0 $(4.6)
After-tax net unrealized gains (losses) related to derivatives accounted for as hedges 0.0 1.3 0.4
After-tax net realized (gains) losses on derivative transactions reclassified into earnings 0.0 0.4 0.0
Accumulated other comprehensive (loss) income related to SFAS No. 133 — March 31, 2003 $0.0 $2.7 $(4.2)
Three months ended
March 31, 2002
NSP-
(Millions of dollars) Minnesota PSCo SPS
Balance at Jan. 1, 2002 $ 0.1 $(4.3) $(4.4)
After-tax net unrealized gains (losses) related to derivatives accounted for as hedges (0.1) 8.7 (0.3)
After-tax net realized (gains) losses on derivative transactions reclassified into earnings (0.2) (0.8) 0.2
Accumulated other comprehensive (loss) income related to SFAS No. 133 — March 31, 2002 $(0.2) $ 3.6 $(4.5)
Cash Flow Hedges
NSP-Minnesota, PSCo and SPS enter into derivative instruments to manage their exposure to changes in commodity prices. These derivative
instruments take the form of fixed-price, floating-price or index sales, or purchases and options, such as puts, calls and swaps. These derivative
instruments are designated as cash flow hedges for accounting purposes, and the changes in the fair value of these instruments are recorded as a
component of Other Comprehensive Income. At March 31, 2003, NSP-Minnesota, PSCo and SPS had various commodity-related contracts
extending through 2009. Amounts deferred in Other Comprehensive Income are recorded as the hedged purchase or sales transaction is
completed. This could include the physical sale of electric energy or the use of natural gas to generate electric energy. As of March 31, 2003,
PSCo had net gains of $1.7 million accumulated in Other Comprehensive Income that are expected to be recognized in earnings during the next
12 months as the hedged transaction occurs. However, due to the volatility of commodities markets, the value in Other Comprehensive Income
will likely change prior to its recognition in earnings. SPS’ other comprehensive income expected to be recognized during the next 12 months
is not material.
As required by SFAS No. 133, PSCo recorded gains of $0 and $0.1 million related to ineffectiveness on commodity cash flow hedges during
the three months ended March 31, 2003 and 2002, respectively.
SPS enters into interest rate swap instruments that effectively fix the interest payments on certain floating rate debt obligations. These
derivative instruments are designated as cash flow hedges for accounting purposes, and the change in the fair value of these instruments is
recorded as a component of Other Comprehensive Income. SPS expects to reclassify into earnings through March 2004 net losses from Other
Comprehensive Income of approximately $0.8 million.
27. Hedge effectiveness is recorded based on the nature of the item being hedged. Hedging transactions for the sales of electric energy are recorded
as a component of revenue, hedging transactions for fuel used in energy generation are recorded as a component of fuel costs, and hedging
transactions for interest rate swaps are recorded as a component of interest expense.
Derivatives Not Qualifying for Hedge Accounting
NSP-Minnesota and PSCo have trading operations that enter into derivative instruments. These derivative instruments are accounted for on a
mark-to-market basis in their respective Consolidated Statements of Operations. All derivative instruments are recorded at the amount of the
gain or loss from the transaction within Operating Revenues on the Consolidated Statements of Operations.
Normal Purchases or Normal Sales
Xcel Energy’s Utility Subsidiaries enter into fixed-price contracts for the purchase and sale of various commodities for use in their business
operations. SFAS No. 133 requires a company to evaluate these contracts to determine whether the contracts are derivatives. Certain contracts
that literally meet the definition of a derivative may be exempted from SFAS No. 133 as normal purchases or normal sales. Normal purchases
and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that
will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the
requirements of normal are documented as normal and exempted from the accounting and reporting requirements of SFAS No. 133.
Xcel Energy’s Utility Subsidiaries evaluate all of their contracts when such contracts are entered to determine if they are derivatives and if so,
if they qualify and meet the normal designation requirements under SFAS No. 133. None of the contracts entered into within the trading
operations qualify for a normal designation.
Normal purchases and normal sales contracts are accounted for as executory contracts as required under other generally accepted accounting
principles.
Pending Accounting Change
In April 2003, the Financial Accounting Standards Board (FASB) issued SFAS No. 149 — Amendment of Statement 133 on Derivative
Instruments and Hedging Activities (SFAS No. 149). SFAS No. 149, which amends and clarifies accounting for derivative instruments,
including certain derivative instruments embedded in other contracts, and for hedging activities under SFAS No. 133. SFAS No. 149 clarifies
the discussion around initial net investment, clarifies when a derivative contains a financing component, and amends the definition of an
underlying to conform it to language used in FASB Interpretation No. 45. In addition, SFAS No. 149 also incorporates certain implementation
issues of a derivative implementation group. The provisions of SFAS No. 149 are effective for contracts entered into or modified after June 30,
2003 and for hedging relationships designated after June 30, 2003. The guidance will be applied to hedging relationships on a prospective
basis. The Utility Subsidiaries are currently assessing SFAS No. 149 but do not anticipate that it will have a material impact on consolidated
results of operations, cash flows or financial position.
7. Segment Information (NSP-Minnesota, NSP-Wisconsin, PSCo and SPS)
Xcel Energy’s Utility Subsidiaries each have two reportable segments, Electric Utility and Natural Gas Utility, with the exception of SPS,
which has only an Electric Utility reportable segment. Trading operations are not a reportable segment; electric trading results are included in
the Electric Utility segment.
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28. (Thousands of dollars)
NSP-Minnesota
Natural
Three months ended Electric Gas All Consolidated
March 31, 2003 Utility Utility Other Total
Revenues from:
External customers $588,122 $332,443 $6,194 $926,759
Internal customers 189 807 — 996
Total revenue 588,311 333,250 6,194 927,755
Segment net income $ 24,839 $ 17,817 $1,795 $ 44,451
March 31, 2002
Revenues from:
External customers $540,819 $187,213 $6,733 $734,765
Internal customers 163 323 — 486
Total revenue 540,982 187,536 6,733 735,251
Segment net income $ 20,717 $ 10,625 $1,691 $ 33,033
NSP-Wisconsin
Natural
Three months ended Electric Gas All Consolidated
March 31, 2003 Utility Utility Other Total
Revenues from:
External customers $120,487 $63,866 $ 87 $184,440
Internal customers 39 567 — 606
Total revenue 120,526 64,433 87 185,046
Segment net income $ 15,366 $ 4,489 $ (1) $ 19,854
March 31, 2002
Revenues from:
External customers $116,877 $40,299 $ 86 $157,262
Internal customers 45 95 — 140
Total revenue 116,922 40,394 86 157,402
Segment net income $ 14,262 $ 3,905 $(216) $ 17,951
PSCo
Natural
Three months ended Electric Gas All Consolidated
March 31, 2003 Utility Utility Other Total
Revenues from:
External customers $492,370 $256,665 $6,648 $755,683
Internal customers 68 12 — 80
Total revenue 492,438 256,677 6,648 755,763
Segment net income $ 35,714 $ 32,666 $1,707 $ 70,087
March 31, 2002
Revenues from:
External customers $433,999 $316,851 $7,765 $758,615
Internal customers 51 14 — 65
Total revenue 434,050 316,865 7,765 758,680
Segment net income $ 31,820 $ 30,900 $3,971 $ 66,691
In 2003, the process to allocate common costs of the electric and gas utility segments was revised. Segment results for 2002 have been restated
to reflect the revised cost allocation process.
29. SPS
SPS operates in the regulated electric utility industry, providing wholesale and retail electric service in the states of Texas, New Mexico,
Kansas and Oklahoma. Revenues from external customers were $244.6 million and $211.7 million for the three months ended March 31, 2003
and 2002, respectively.
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30. 8. Comprehensive Income (NSP-Minnesota, NSP-Wisconsin, PSCo, SPS)
NSP-Minnesota
The components of total comprehensive income are shown below:
Three months ended
(Millions of dollars) March 31
2003 2002
Net income $44.5 $33.0
Other comprehensive loss:
After-tax net unrealized (losses) gains related to derivatives
accounted for as hedges (see Note 6) — (0.1)
After-tax net realized (gains) losses on derivative transactions
reclassified into earnings (see Note 6) — (0.2)
Other comprehensive loss — (0.3)
Comprehensive income $44.5 $32.7
The accumulated comprehensive income in stockholder’s equity at March 31, 2003 and 2002, relates to valuation adjustments on NSP-
Minnesota’s derivative financial instruments and hedging activities and the mark-to-market components of NSP-Minnesota’s marketable
securities.
NSP-Wisconsin
For NSP-Wisconsin, comprehensive income equals net income for the quarters ended March 31, 2003 and 2002.
PSCo
The components of total comprehensive income are shown below:
Three months ended
(Millions of dollars) March 31
2003 2002
Net income $70.1 $66.7
Other comprehensive income:
After-tax net unrealized gains (losses) related to derivatives
accounted for as hedges (see Note 6) 1.3 8.7
After-tax net realized losses (gains) on derivative transactions
reclassified into earnings (see Note 6) 0.4 (0.8)
Other comprehensive income 1.7 7.9
Comprehensive income $71.8 $74.6
The accumulated comprehensive income in stockholder’s equity at March 31, 2003 and 2002, relates to valuation adjustments on PSCo’s
derivative financial instruments and hedging activities, the mark-to-market component of PSCo’s marketable securities and its minimum
pension liability.
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